OneSource Specialty Pharma Limited has secured in-principle approval from the Government of Karnataka for the expansion of its Unit II facility, under the Karnataka Industrial Policy (KIP) 2025–30. The approval pertains to incentives and concessions associated with the company's proposed investment in expanding its manufacturing infrastructure, marking a notable development in its growth trajectory.

Approval Details

The key details of the government approval are outlined below:

Facility and Expansion Scope

The expansion pertains to Unit II, the company's flagship facility, situated at Obadenahalli, 2nd Phase, KIADB Industrial Area, Doddaballapur Taluk, Bengaluru Rural District. The proposed expansion is aimed at enhancing manufacturing capacities to better service the company's global partners. Unit II holds strategic importance within the company's operational framework, and this expansion is described as a significant step in the company's broader growth strategy.

Regulatory Disclosure

The development was disclosed by OneSource Specialty Pharma under Regulation 30, as communicated to BSE Limited and the National Stock Exchange of India Limited on May 16, 2026. The disclosure was signed by Trisha A, Company Secretary and Compliance Officer, Membership Number A47635.

OneSource Specialty Pharma Limited announced its consolidated financial results for the quarter and full year ended March 31, 2026, following a Board of Directors meeting held on May 13, 2026. The Board approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, and also approved the appointment of B S R & Co. LLP as statutory auditors in place of Deloitte Haskins & Sells. The company reported a strong sequential recovery in Q4FY26, with revenue rising 47% quarter-on-quarter to ₹4,282 million, driven by growth across all service offerings and the India semaglutide commercial launch. EBITDA for the quarter expanded more than 5x to ₹919 million, with margins improving by 1,550 basis points to 21%. Adjusted Profit After Tax (PAT) stood at ₹390 million, compared to a loss in the preceding quarter, with an adjusted EPS of ₹3.4. Pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company published a newspaper advertisement on May 14, 2026 in the Financial Express and Lokmat, providing an extract of the audited financial results for the quarter and financial year ended March 31, 2026.

Q4 Performance

The quarterly performance reflected significant operating leverage on higher Contract Service Agreement (CSA) revenues. Revenue for Q4FY26 was ₹4,282 million, up from ₹2,903 million in Q3FY26. EBITDA increased to ₹919 million from ₹173 million in the previous quarter. On a reported basis, PAT was ₹46 million, a turnaround from a loss of ₹887 million in Q3FY26. The company attributed the growth to successful semaglutide launches in India across multiple customer brands, alongside new launches in the US injectables and soft-gelatin businesses.

Full-Year Financial Performance

For the full fiscal year FY26, consolidated revenue from operations stood at ₹14,215.90 million, a marginal decline from ₹14,448.53 million in FY25. The company reported a consolidated net loss of ₹738.03 million for FY26, compared to a net loss of ₹172.81 million in the previous year. Adjusted PAT for the year was ₹739 million, with an adjusted EPS of ₹6.5, compared to ₹21.0 in FY25. The decline in full-year profitability was attributed to a softer second half impacted by delayed semaglutide approvals in Canada and an elevated cost base due to the ramp-up of the DDC facility. The impact of the New Labour Code was fully provided in FY26 financials.

Standalone Financial Highlights

On a standalone basis, revenue from operations for Q4FY26 was ₹4,189.62 million, compared to ₹2,902.20 million in Q3FY26 and ₹4,774.14 million in Q4FY25. Standalone profit after tax for Q4FY26 was ₹214.79 million, a turnaround from a loss of ₹621.85 million in Q3FY26. For the full year, standalone revenue from operations stood at ₹14,053.81 million versus ₹12,995.89 million in FY25, with standalone profit after tax of ₹212.10 million compared to ₹200.00 million in FY25. Basic and diluted EPS for continuing operations on a standalone basis stood at ₹1.85 for FY26 versus ₹1.81 in FY25.

Management Commentary

Mr. Neeraj Sharma, CEO & MD, commented on the performance: "We saw a strong recovery in Q4 driven by broad-based business performance. The quarter was marked by successful semaglutide launches in India across multiple customer brands, alongside new launches in the US injectables and soft-gelatin businesses. With the recent back-to-back semaglutide approvals in Canada and continued expansion of our biologics pipeline, we are well positioned to sustain growth momentum into FY27."

Operational Highlights

OneSource reported strong business momentum across its key segments during FY26. The company signed 31 new MSAs and licensing agreements, executed 18 injectable and softgel product launches, added 5 new logos bringing total customers to 75+, and completed 49 successful regulatory inspections and customer audits with zero critical observations. The company is the CDMO partner for the first three generic semaglutide approvals in G7 countries, including two in Canada and one in the US. Day-1 India semaglutide launches were executed through multiple partners, and multiple customers completed NCE-1 filings for Tirzepatide. In the injectables and softgels business, 10+ new contract and licensing deals were signed, along with 15+ commercial launches, with the first oncology softgel NDA approval secured in partnership with a Top 10 US generics player. Additionally, two commercial approvals and launches in the US were completed in Q4FY26 for small molecule DDC, with 7 molecules in the pipeline for launches in the coming years. A recombinant peptide product developed internally was approved and is being launched in Europe under the biologics DDC segment.

Regulatory Compliance and ESG

OneSource maintained a strong compliance track record during FY26, with 210+ successful audits since inception and a 100% GMP inspection success rate. Key regulatory milestones include receipt of the USFDA Establishment Inspection Report (EIR) for its flagship site following a March 2025 inspection, renewal of EU GMP for both the SPD and flagship sites, and securing ANVISA approval for the flagship site, enabling commercial supply to Brazil as generic semaglutide approvals flow in. On the ESG front, the company was rated in the "Leader" category among NSE-listed peers by NSE Sustainability Ratings & Analytics with a score of 73/100, received an SES ESG score of 65.70/100, and achieved an EcoVadis score of 64/100 (Bronze, Top 35%). The company also maintained a CDP Climate Change score of B and a Water Security score of B.

Capacity Expansion and Guidance

OneSource reaffirmed its FY28 guidance of approximately $400 million in organic revenue with a steady-state EBITDA margin of around 40% and a targeted ROCE of over 50%. Capacity build-out is progressing on track, with approximately $80 million committed to date against a total announced capex of $100 million, and 380+ hires added during FY26 to support the ramp-up. A second line at the flagship site is under qualification with commercial readiness targeted by Q2FY27, and two additional lines are planned for commissioning by FY27. The biologics funnel has grown 4x, with a US-based global biosimilar player onboarded with a pipeline of 5+ biosimilars, and a partnership with a leading European biosimilar company established for drug substance capability. A second project was also secured with a Top 3 global animal health company.

Auditor Appointment

The Board approved the appointment of B S R & Co. LLP (Firm's Registration No.: 101248W/W-100022) as the statutory auditors of the company, to hold office from the conclusion of the 19th Annual General Meeting for a term of five consecutive years, i.e., until the conclusion of the 24th Annual General Meeting, subject to shareholder approval. This replaces Deloitte Haskins & Sells (Firm Registration No. 008072S), whose term is ending at the ensuing annual general meeting. B S R & Co. LLP, constituted on March 27, 1990 and converted to a Limited Liability Partnership on October 14, 2013, has its registered office in Mumbai and operates through 14 locations across India, with a strength of over 4,000 personnel and 170 partners. The firm serves as statutory auditor to several companies listed on stock exchanges in India, including companies in the Pharma and Life Sciences sector. Deloitte Haskins & Sells issued an unmodified opinion on the audited financial results for the year ended March 31, 2026 and an unmodified conclusion in respect of the limited review for the quarter ended March 31, 2026.

Regulatory Filing

In compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, OneSource Specialty Pharma published a newspaper advertisement on May 14, 2026 in the Financial Express and Lokmat. The advertisement provided an extract of the audited financial results for the quarter and financial year ended March 31, 2026. The filing was submitted to BSE Limited and the National Stock Exchange of India Limited by Trisha A, Company Secretary and Compliance Officer (Membership Number: A47635).

Acquisition Update

The Board approved a decision to not pursue the previously announced scheme of arrangement in its current form. The scheme, announced in September 2025 with swap ratios based on independent valuation by PwC and a fairness opinion from ICICI Securities, received NOC from Indian stock exchanges on February 26, 2026. Following stakeholder concerns on valuation, the Board decided to revisit the transaction after successful delivery of respective companies' FY28 guidance.